The Italian Antitrust Authority has imposed a fine of €25,895,043 on Morellato Group for an agreement reportedly restricting competition in the distribution of watches and jewelry, according to a report from lamilano.it.

Morellato dictated online resale prices for its products and prohibited authorized dealers from utilizing major third-party e-commerce platforms, an agreement the authority deemed a "vertical cartel." This penalty scrutinizes commercial practices for mid-range and affordable timepieces and jewelry in the Italian market, enforcing competition law in the sector.

What We Know So Far

  • Morellato Spa has been fined €25,895,043 by Italy's Antitrust Authority, as reported by lamilano.it.
  • The fine was reportedly issued for an agreement that restricted competition in the market for mid-range and affordable jewelry and watches.
  • The conduct in question allegedly involved Morellato setting maximum discounts for online sales and preventing distributors from operating on platforms such as Amazon and eBay.
  • The anti-competitive agreement was reportedly implemented from July 20, 2018, and was structured to continue until December 23, 2025.
  • The authority's assessment, according to the report, concluded that Morellato's actions constituted a vertical cartel, which is a violation of Article 101 of the Treaty on the Functioning of the European Union (TFEU).

Morellato Group's Antitrust Violations Explained

The Italian Antitrust Authority (AGCM) found Morellato established a restrictive framework for its network of authorized distributors, particularly concerning their online sales activities, which inhibited fair competition. This decision resulted in a fine of more than €25 million, reflecting the gravity with which the regulator viewed the infringement.

The conduct was classified as a "vertical cartel," which refers to anti-competitive agreements between firms operating at different levels of the production or distribution chain—in this case, between Morellato as the manufacturer and its retailers. Such arrangements are scrutinized under European Union competition law, specifically Article 101 of the TFEU. This article expressly proscribes agreements between undertakings which may affect trade between EU member states and which have as their object or effect the prevention, restriction, or distortion of competition within the internal market. While some vertical agreements can be benign or even beneficial, those that include "hardcore" restrictions, such as fixing resale prices, are generally considered serious violations.